- What you paid for your home doesn’t affect the value of your El Dorado Hills home!
- The amount of cash you need from the sale of your home doesn’t affect the value of your El Dorado Hills home!
- The asking price you want for your home doesn’t affect the value of your El Dorado Hills home!
- What another real estate agent says your home is worth doesn’t affect the value of your El Dorado Hills home!
- What an appraiser says your home is worth doesn’t affect the value of your El Dorado Hills home!
The value of your El Dorado Hills home is determined by what a BUYER is willing to pay for your home in TODAY’S MARKET based on COMPARING it to others currently on the market for sale.
Two factors affect value:
- Your personal (internal) situation is the first factor and it changes over time. Let’s illustrate – suppose you were a growing family buying their present house 15 years ago. You would most likely have put great value on such things as 4 bedrooms, a huge fenced yard and a great school system. But now, 15 years later, your family is grown and have their own homes. You don’t need 4 bedrooms, a huge yard or that terrific school system. The house didn’t change – your personal (internal) use for that house did. Thus, it’s value to you changed. It’s the internal factors in people’s lives that compel them to buy and sell property.
- These are the circumstances outside of your control that affect values and they also change – sometimes for better, sometimes for worse. If, for instance, a major 8 lane toll road is proposed to cut through your neighborhood, your property value could take a hit. On the other hand, if a Light Rail Station is coming to your neighborhood, that could decrease your commute to work from 1 hour to 20 minutes, your value may increase. The law of supply and demand is a huge external factor that affects value. If there are more buyers than houses, the values go up. If more people want to sell than there are buyers, values go down.
Cost is history. Cost measures past expenditures. But that was then and this is now. What you paid for your house then or the cost of maintaining it doesn’t mean anything as far as the present or future value of your El Dorado Hills home is concerned.